1.   When assigning exposures to grades or pools, institutions calculating KIRB shall consider the originator’s or, where the originator acquired the securitised exposures from the original lender, the original lender’s underwriting standards and the servicer’s recovery practices and servicing standards, as potential risk drivers, unless those institutions use, for the quantification of the risk parameters associated with those grades or pools, different calibration segments for different originators, original lenders, and servicers.

2.   Institutions calculating KIRB may set LGD at 50 % for retail qualifying securitised exposures.

3.   Institutions calculating KIRB may set the following values for LGD, instead of the values laid down in Article 161(1), points (e) and (f), of Regulation (EU) No 575/2013:

(a)	50 % for non-retail senior qualifying securitised exposures;

(b)	100 % for non-retail subordinated qualifying securitised exposures.